Things to Know About Alternative Investments
Did your broker or brokerage firm recommend that you invest in alternative investments? Did you end up losing money and believe your financial advisor is responsible?
If so, you aren’t alone. More and more investors have been taken advantage of in recent years as the popularity of alternative investments grows. You can learn more about what alternative investments are, how they work, and how you may be able to get your money back by reading on.
What Are Alternative Investments?
Alternative investments are any type of investment that is not a stock or bond. Some examples of alternative investments could include:
- Hedge funds
- Managed futures
- Private equity
- Derivatives contracts
- Art and antiques
- Venture capital
These are just a couple of different types of alternative investments. Many investors are drawn to them because they have the potential to generate high returns. But they are often very complex, illiquid, and have significantly higher fees. Alternative investments are not a suitable recommendation for the majority of investors.
Despite this, alternative investments are known for generating higher-than-average commissions for broker-dealers. Knowing this, brokers will often leave out material information, mislead investors regarding the alternative investment opportunity, and fail to do their due diligence in order to sell the alternative investment and generate a sizable commission.
Recovering Restitution for Alternative Investments
If your broker failed to provide you with the information you needed to decide whether an alternative investment was right for you, if they mislead you, if they recommended the alternative investments unsuitably, or if they breached their fiduciary duties, they can be held accountable for your investment losses.
The Financial Industry Regulatory Authority (FINRA) is responsible for overseeing broker-dealer conduct. If your financial advisor is responsible for your losses, you can initiate a FINRA arbitration complaint. If FINRA determines your case will be heard, it will grant you a hearing.
At your FINRA arbitration hearing, both you and the respondent will present evidence to support your case, respectively. Once both parties have presented evidence, the arbitrators will retire and review the evidence further to come to a decision. The good news is that if the FINRA arbitrators decide you should be compensated for your losses, it can order the broker to pay your restitution as soon as thirty days after the decision has been made.
It should be noted that FINRA arbitration decisions are not eligible for an appeal. They are binding and final. Although this may make you hesitate, it is important to remember that if you went to court, your case could drag on for years with appeals, and your award could be held up by legalities for some time before you ever see a penny. Arbitration gives you the opportunity to get the money that’s rightfully yours, sooner.
Meet with an Investment Loss Lawyer
If you suspect that your broker is the cause of your alternative investment losses and you aren’t sure where to turn, get help from a qualified investment loss lawyer at Wolper Law Firm. Fill out the quick contact form below or call 800-931-8452 to schedule your free complaint review and get started on your case.
- Learn How Due Diligence Regulations Protect Investors Seeking Private Placement Transactions
- Triad Investors LLC, Broker and The Just Company Investment Adviser, Mark Just, Has Six Customer Complaints, Including Complaints For The Sale Of Alternative Investments
- Former Stifel, Nicolaus & Company, Inc. Broker Joseph H. Pratt Barred by FINRA for Insider Trading; Customer Complaint Pending
- Former Dinosaur Financial Group, LLC Broker and Investment Adviser David Karandos Has Six Customer Complaints, Including 3 Pending Complaints Alleging Sales Practice Misconduct
- Former Ameriprise Financial Services Broker and Investment Adviser Angel Bardeche Fined and Suspended After Engaging in Unsuitable Mutual Fund Trading for Clients
- Benjamin F. Edwards and Co., Inc. Broker John Griner Fined and Suspended After Allegedly Improperly Exercising Discretion Without Proper Authorization
- FINRA Reports That Margin Levels in Customer Accounts Have Reached All-Time Highs of More Than $722 Billion
- How to Stop Stock Loss Caused by Your Broker-Dealer
- Former LPL Financial LLC Broker, Maziar Monshi, Has Had Three Customer Complaint Disclosures Alleging Sales Practice Misconduct
- Merrill Lynch, Pierce, Fenner & Smith Incorporated Broker, John Gatto, Has Had Eight Customer Complaint Disclosures Alleging Sales Practice Misconduct